Lisa Mailhot | October 17, 2023
The housing market is in flux, with potential home buyers and sellers closely monitoring the latest developments. In September 2023, pending home sales have dropped by a significant 13% year-over-year, making affordability a growing concern for prospective buyers. Meanwhile, mortgage rates remain stubbornly high, prompting many to ponder when the right time to make a move might be.
Let's delve into the current state of the housing market, explore what buyers and sellers are doing in response, and provide valuable tips to help you navigate this challenging environment.
Buyers are facing a challenging landscape, with monthly housing payments at an all-time high due to a combination of soaring home prices and near-record-high mortgage rates. According to recent data, U.S. home prices increased by 3% year over year during the four weeks ending September 17. This has resulted in a significant financial burden for those looking to purchase homes, pushing pending home sales down by 13% compared to the previous year.
Additionally, the total number of homes available for sale has decreased by 16%, as homeowners opt to stay put to maintain their relatively low mortgage rates. As a result, potential buyers are finding limited options in the market.
There is a glimmer of hope for buyers, as a few more home sellers have entered the market recently. New listings have stabilized, showing a slight increase since the beginning of September. Although they are still down 7% compared to the previous year, this is the smallest decline since July 2022.
Some homeowners may be seizing the opportunity to capitalize on rising home prices and low inventory by listing their properties. They recognize that being one of the only homes for sale in their neighborhood could work to their advantage in this competitive market.
The Federal Reserve has a significant impact on the housing market. While they decided against an interest rate hike at their recent meeting, they also signaled that interest rates will likely remain higher than anticipated into 2024 and 2025. This suggests that borrowing costs and mortgage rates will likely stay elevated for an extended period. For buyers waiting for housing costs to come down, this news may prompt them to consider entering the market sooner rather than later.
While affordability remains a concern, there are signs of increased inventory and opportunities for those willing to navigate the market strategically. To stay ahead in this dynamic environment, it's essential to stay informed and consider expert advice when making real estate decisions. If you have questions or need assistance in navigating the housing market, please don't hesitate to reach out. Let's connect to discuss your unique situation and explore how you can achieve your real estate goals in this evolving landscape.
Dana Anderson. (September 22, 2023). Housing Market Update: Pending Home Sales Drop 13% Year Over Year As Mortgage Rates Stay Stubbornly High. Source
Stay up to date on the latest real estate trends.
Lisa Mailhot | November 30, 2023
Experience Unique Living: Converted Churches, Barns, and Factories Turned Homes. Discover the charm of unconventional conversions with history, character, and modern c…
Lisa Mailhot | November 28, 2023
Delve into the secrets of Orange County, California, with our blog featuring captivating trivia facts. Whether you're a potential buyer, seller, or a curious tourist, …
Lisa Mailhot | November 27, 2023
Uncover 2023 Orange County Housing Market Trends: Delve into median sold prices, sales metrics, and market dynamics to understand if it's a buyer's or seller's market.…
Lisa Mailhot | November 22, 2023
Stuck in a last-minute gift scramble? Discover seven low-stress, last-minute gift ideas that'll delight your loved ones and elevate their home experience. From cozy th…
Lisa Mailhot | November 21, 2023
Explore the changing real estate landscape influenced by declining mortgage rejection rates. Discover the opportune moment for buying or selling your home while improv…
Lisa Mailhot | November 20, 2023
Selling your home with challenging neighbors? Learn how to handle noisy, disrespectful, or problematic neighbors effectively. Follow these tips to ease the selling pr…
Lisa Mailhot | November 16, 2023
Get the latest insights into the Orange County real estate market. Discover trends, notable closings, and the impact of the holiday season on inventory. Stay informed …
Lisa Mailhot | November 15, 2023
Stay informed on FHFA's 2024 multifamily loan purchase caps, totaling $140 billion for Fannie Mae and Freddie Mac. Explore the impact on the multifamily market and its…
Lisa Mailhot | November 14, 2023
Learn about the rise of alternative lenders, such as parents, as a solution to the affordability challenge in today's real estate market. Explore available options for…
You’ve got questions and we can’t wait to answer them.